Financial Performance - The Group's revenue for the Reporting Period was approximately HK$21,961,000, representing an increase of approximately 112.9% compared to the Corresponding Period[14] - The Group recorded a loss and total comprehensive expense for the Reporting Period of approximately HK$2,258,000, compared to a loss of approximately HK$2,556,000 for the Corresponding Period[14] - Revenue for the three months ended August 31, 2023, was HK$21,961,000, a significant increase of 113.8% compared to HK$10,316,000 in the same period of 2022[26] - Loss before income tax expenses for the period was HK$2,258,000, slightly improved from a loss of HK$2,556,000 in the previous year[26] - Loss attributable to owners of the Company was HK$2,606,000, compared to a loss of HK$2,946,000 in the same period last year, indicating a reduction of 11.5%[27] - Basic and diluted loss per share attributable to owners of the Company was HK$2.63, an improvement from HK$4.85 in the previous year[26] - Total comprehensive loss for the period was HK$2,258,000, which is a decrease from HK$2,556,000 in the prior year[26] - The balance of accumulated losses as of August 31, 2023, was HK$129,114,000, compared to HK$133,103,000 as of August 31, 2022[27] Dividend Policy - The Board did not recommend payment of any dividend for the Reporting Period[15] - No dividends were paid, declared, or proposed by the Company during the reporting period and the corresponding period[56] - No dividends have been paid or declared by the Company for the Reporting Period and Corresponding Period[109] Revenue Sources - Revenue from tobacco, food, and beverage sales was HK$15,338,000, up from HK$9,856,000, while entertainment income was HK$195,000, and event income increased to HK$6,061,000 from HK$256,000[48] - Revenue from the club and entertainment business increased by approximately HK$11,645,000, or approximately 112.9%, from approximately HK$10,316,000 for the Corresponding Period to approximately HK$21,961,000 for the Reporting Period[74] Operational Highlights - The Group operated 1 night-club, 1 sports-themed bar, and 2 lounges as of August 31, 2023, diversifying its offerings in the club and entertainment market[64] - The Group's customer base is diversified, with no individual customer accounting for more than 10% of total revenue during the reporting period[43] - The Group's principal activities remain focused on the operations of club and entertainment business in Hong Kong[63] - The increase in revenue was mainly due to the relaxing of business hours of the outlets during the Reporting Period after the pandemic[74] - The removal of social distancing measures and lifting of cross-border travel restrictions in Hong Kong contributed to improved operational performance during the Reporting Period[93] Financial Management - The Company raised HK$5,878,000 through the placing of shares during the period[27] - The Group is committed to stringent financial planning and resource allocation to maintain a competitive edge and enhance diversification in response to future challenges[98] - The management will regularly review operational efficiency and impose stringent cost control measures to mitigate risks associated with market fluctuations[99] Shareholder Information - As of August 31, 2023, Ms. Liu Huijing holds 4,265,250 shares, representing 4.19% of the company's total shareholding[138] - Mr. Wang Ning is the largest shareholder with 17,401,761 shares, accounting for 17.08% of the total[143] - Mr. Yuan Lin personally holds 11,643,250 shares and has deemed interest in an additional 12,275,000 shares through his controlled entities[150] - Mr. Ho Chin Nang is deemed to have interest in 6,920,000 shares held by his wholly owned company[150] Corporate Governance - The Company has complied with the Corporate Governance Code except for the deviation where the roles of Chairman and CEO are held by the same individual, Mr. Wong Chi Yung[153] - The Board believes the current structure does not impair the balance of power and authority between the Board and management[154] - The Company aims to increase the independence of corporate governance by potentially separating the roles of Chairman and CEO in the future[154] - Information on corporate governance practices is detailed in the Corporate Governance Report in the 2023 Annual Report[158] Capital Management - The company raised approximately HK$12,000,000 in net proceeds from a rights issue, with gross proceeds of approximately HK$12,500,000[118] - The net proceeds from the rights issue were allocated as follows: HK$4.0 million for renovation costs, HK$1.8 million for rent payments, and HK$6.2 million for general working capital[119] - A placing agreement was entered into on May 17, 2023, to raise funds for setting up the Wan Chai lounge, with up to 11,985,600 shares placed at HK$0.50 each[121] - The net proceeds from the placing were approximately HK$5,800,000, fully utilized for setting up the Amante House and inventory purchases[122] - A capital reorganization was proposed on July 26, 2023, involving a reduction of the par value of each issued share from HK$0.20 to HK$0.01[126] - The extraordinary general meeting to approve the capital reorganization was held on September 12, 2023[127] Audit and Compliance - The audit committee reviewed the financial statements and confirmed compliance with applicable accounting standards and legal requirements[160] - The unaudited condensed consolidated financial statements for the Reporting Period were approved on 12 October 2023[161] - The Company considers quarterly updates sufficient for the Board to fulfill their responsibilities, given no material changes in business operations noted between months[157] Market Conditions - The Group plans to expand its outlet network by establishing more clubs, bars, and restaurants in Hong Kong, despite facing significant competition in the food and beverage and entertainment industry[103] - Purchases from the largest supplier accounted for approximately 50.6% of total purchases in the Reporting Period, down from 52.5% in the Corresponding Period, highlighting dependency on a single supplier[108] - The largest supplier accounted for approximately 50.6% of total purchases during the reporting period, down from 52.5% in the previous year[110]
新爱德集团(08412) - 2024 Q1 - 季度财报